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Tuesday April 23, 2024

BankIslami posts record profit

BankIslami's net profit and return surged by 97 percent to Rs16.7 billion

By News Desk
March 02, 2024
This image shows an advertisement stall of BankIslami. — Facebook/BankIslami Pakistan Limited
This image shows an advertisement stall of BankIslami. — Facebook/BankIslami Pakistan Limited

KARACHI: BankIslami Pakistan Ltd reported a record after-tax profit of Rs11.04 billion for 2023, up 149 percent from a year earlier, as it benefited from higher returns on investments and lower provisions.

The bank, which has 341 branches across Pakistan, said it had declared a final cash dividend of 10 percent, in addition to an interim dividend of 17.5 percent paid in the fourth quarter of 2023, bringing the total payout to Rs2.75 per share.

BankIslami's net profit and return surged by 97 percent to Rs16.7 billion, while its earnings per share jumped to Rs4.41 rupees from Rs1.77 in 2022.

The bank attributed its strong performance to its strategic allocation of excess liquidity into secured investments, which boosted its investment portfolio by 74.7 percent to Rs314.08 billion.

The bank's financing portfolio grew by 14.3 percent to Rs129.9 billion, despite the challenging economic environment, high policy rates, and strict regulatory measures on consumer financing.

BankIslami said it had prudently established a buffer of provision, ensuring a coverage of 104.2 percent against delinquent portfolio, which would act as a strong shock absorber and safeguard the bank's stability.

The bank also saw a 25.6 percent increase in total deposits, maintaining a favorable CASA mix of 62.2 percent. Its capital adequacy ratio (CAR) reached 23.79 percent. Looking ahead, BankIslami said it aimed to strengthen its growth trajectory by expanding its deposit base and enriching the customer experience by further growing its footprint.

"With its extraordinary financial triumph, BankIslami is poised to continue its success story and make a significant impact in the financial industry," the bank said in a statement.